Introduction to Spending Plans! Introductory Level

Transcription

1 Introduction to Spending Plans! Introductory Level

2 Racing for the Money 1. Four Groups 2. A clue will be Read 3. On GO Each group needs sticky notes Group writes answer on a sticky note 1 team member runs and posts answer Take Charge Today November 2014 Introduction to Spending Plans Slide 2

3 Racing for the Money Quadrant G1 Team 1 Team 2 Team 3 Team 4 Take Charge Today November 2014 Introduction to Spending Plans Slide 3

4 What is an example of Income? G1 Team 1 Team 2 Team 3 Team 4 Take Charge Today November 2014 Introduction to Spending Plans Slide 4

5 What is an example of Expenses? G1 Team 1 Team 2 Team 3 Team 4 Take Charge Today November 2014 Introduction to Spending Plans Slide 5

6 What is a Net Gain? Team 1 Team 2 Team 3 Team 4 Take Charge Today November 2014 Introduction to Spending Plans Slide 6

7 What is a Net Loss? Team 1 Team 2 Team 3 Team 4 Take Charge Today November 2014 Introduction to Spending Plans Slide 7

8 What is a Spending Plan? Team 1 Team 2 Team 3 Team 4 Take Charge Today November 2014 Introduction to Spending Plans Slide 8

9 What can help us manage our spending? Think, Pair, Share 2 minutes to think or scan reading 2 minutes to discuss with a partner Randomly selected groups will share out with the class

10 SPENDING PLANS What is it? A tool to help manage how you spend your money. Why use one? Spending plans are used to help Track where money is going Identify income & expenses Meet financial goals Take Charge Today November 2014 Introduction to Spending Plans Slide 10

11 Spending Plan Terminology Income Place Cards here: Expense Place Cards here: Money Earned Money Spent Take Charge Today November 2014 Introduction to Spending Plans Slide 11

12 How do you make a spending plan? G1 Tracking Personalize Income & Expenses How to keep track? Paper, Cell Phone, Computer Past Records Time Weekly, bi-weekly, monthly Categories Where do you spend? Create a category Take Charge Today November 2014 Introduction to Spending Plans Slide 12

13 Spending Plan Process (cont.) Money in Each Category Keep Track Evaluate & Adjust Your past spending? Keep records Did you overspend? Average percentages Determine Anticipated Spending Cell, computer, receipts, paper? Did you over estimate? Take Charge Today November 2014 Introduction to Spending Plans Slide 13

14 Spending Plan Goal Goal is to have a zero balance Income greater than expenses = Net Gain Expenses greater than income = Net Loss Take Charge Today November 2014 Introduction to Spending Plans Slide 14

15 Sean is Rollin With It: Rollin with it! 1. Roll the die 2. Fill in the blanks with the numbers rolled 3. Complete the spending plan with rolled numbers How did your rollin with it go? Take Charge Today November 2014 Introduction to Spending Plans Slide 15

16 Rolling out a Net Gain More Income than Expenses Net Loss More Expenses than Income Any Adjustments? Any Adjustments? Take Charge Today November 2014 Introduction to Spending Plans Slide 16

17 Spending Plan Contents Income Salary & Wages Tax Returns Interest earned on Savings & Investments Money from others Expenses Food Housing & Utilities Transportation Savings Insurance Clothing Net Gain or Net Loss Take Charge Today November 2014 Introduction to Spending Plans Slide 17

18 Lee s Spending Plan Example Income Expenses Item Amount Item Amount Mowing a lawn $10.00 Movie ticket and popcorn $15.00 Birthday gift $15.00 Snack and drink $5.00 Total $25.00 Total $20.00 Does he have a Net Gain or a Net Loss? If he would like to buy a new shirt for $15, can he? Take Charge Today November 2014 Introduction to Spending Plans Slide 18

19 In Conclusion A spending plan: Is a tool to help people track their money A spending plan tracks: Income and expenses A Net Gain is: More income than expenses A Net Loss is: More expenses than income Take Charge Today November 2014 Introduction to Spending Plans Slide 19

20 In Conclusion Track Past Income and Expenses Evaluate and Adjust Personalize Track your Actual Income and Expenses Determine Anticipated spending Take Charge Today November 2014 Introduction to Spending Plans Slide 20

21 Your Turn! Spending Plan Shake-Up Budget your beans to pay for the things you need and want Each square is worth one bean and all the squares must be filled to have that item Budget as if you are a senior in high school Take Charge Today November 2014 Introduction to Spending Plans Slide 21

22 Spending Plan Shake-Up Could you afford everything that you needed? Could you afford everything that you wanted? How does Spending Plan Shake-Up relate to real life? Take Charge Today November 2014 Introduction to Spending Plans Slide 22